VAT Ruling No. 020-89

January 27, 1989 VAT RULING NO. 020-89 Republic Glass Corporation 6th Floor, Republic Glass Building Tordesillas cor. Gallardo Streets Salcedo Village, Makati Metro Manila Attention: Mr . Rolando R . Abratique Senior Manager S i r s : This refers to your letter dated June 15, 1988 stating that you paid the following amounts of taxes on January, 1988 in your importation of machinery parts and supplies on December, 1987 and were subjected to a higher rate of 20%. LLphil 1. Advance sales tax under O.R. No. P218,821 1100873 P87,525 1100624 51,033 1096644 80,263 2. Compensating tax under O.R. No. 761916 P33,836 T O T A L P252,657 You now request that you be allowed to credit the said total amount of P252,657 against your output tax due for the initial quarter of 1988. In reply, please be informed that the 20% advance sales tax amounting to P218,821 which was paid in January, 1988 is not for raw materials but for supplies or capital equipment. Such being the case, it cannot be carried over to the initial quarter in 1988 because it is not chargeable, to the deferred sales tax credit account. You may, however, avail of a tax credit for said tax by filing an application for a tax credit certificate with the VAT Division, of this office. cdta Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner